Competition effect on innovation and productivity - The Portuguese case

Anabela Santos (), Michele Cincera, Paulo Neto and Maria Manuel Serrano ()
Additional contact information
Anabela Santos: Université Libre de Bruxelles, iCite
Maria Manuel Serrano: Universidade de Évora – Departamento de Sociologia, UMPP and SOCIUS-CSG/ISEG-UL

No 102, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: The aim of the present paper is to assess the effect of competition on innovation (patent applications) and on productivity (Total Factor Productivity and Labour Productivity), using data from 654 Portuguese firms, according to 208 NACE 4-digits sectors, and over the period 2007 to 2015. For this purpose, two different methodological approaches were used, a Poisson regression model for the patent function and a log-log fixed effect model for the productivity function. The results reveal that, on average, competition has a negative, U-shaped form effect on innovation in the short term, and a positive effect in the medium-long term. Nevertheless, the model focusing only on manufacturing sectors shows some differences from the model considering all economic activities, namely a linear positive effect of competition on innovation. Concerning the effect of competition on productivity, a positive effect on Total Factor Productivity emerged from the analysis, while for labour productivity a negative one prevails.

Keywords: Competition; Innovation; Productivity. (search for similar items in EconPapers)
JEL-codes: D24 L10 O31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2018-05, Revised 2018-05
New Economics Papers: this item is included in nep-com, nep-cse, nep-eff, nep-eur, nep-ind, nep-ino, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (5)

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https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_102.pdf First version, 2018 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0102

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